Toyota plans low cost car for Asia markets

Tokyo, February 16, 2011

Toyota Motor Corp and group firm Daihatsu will build a low cost car in Indonesia aimed at consumers there and in neighbouring countries, the Nikkei business daily reported on Wednesday.

The car, which will be smaller than the Etios it launched in India in 2010, will be priced around 800,000 yen to 900,000 yen ($9,550-$10,740), the report said.

With vehicle sales in the United States and other developed economies still to recover to pre-financial crisis levels, Toyota and other carmakers need to tap burgeoning demand in rapidly developing economies, particularly in Asia.

Minivehicle specialist Daihatsu, 51 per cent owned by Toyota, will invest around 20 billion yen in a new factory able to build 100,000 cars annually in Indonesia, 70 per cent of which it will supply to its parent company, the Nikkei said.

Production, which will be 50,000 cars in the first year, is slated to begin as early as 2013, the paper said.

Toyota spokeswoman Shiori Hashimto said the company did not comment on product plans.

By bolstering output in Indonesia, Toyota aims to make the country its second big production base in southeast Asia after Thailand, the report said.

Shares of Toyota gained 0.6 per cent to 3,935 yen in Tokyo trading, in line with the Nikkei 225. Daihatsu's stock increased 1 per cent to 1,315 yen. – Reuters